Car Insurance Premiums Fall Slightly

Motorists could no doubt do with some good news especially with having to contend with the impact of the pandemic as most other people both here in the UK and the rest of the world are having to do. Well, according to the Car Insurance Price Index that is produced every quarter, there has been a reduction in the average amount paid my motorists for their fully comprehensive car insurance.

The above index reveals that the average amount paid by motorists in the UK for the above level of cover at the end of 2020 amounted to £763 per annum. The average amount paid by motorists at the end of 2019 was £815 per annum. Therefore, there has been an average fall of £52 per annum.

So, what could be the cause of such a drop? Well, one of the reasons may be due to the pandemic as many people here in the UK have been spending less time behind the wheel of their cars as many have not been commuting to work. Obviously, with fewer cars on the roads, this should lead to their being fewer road traffic accidents resulting in their being a lower number of claims resulting in insurance companies having to pay out less in claims. If insurers are not paying out as much to meet claims this may mean that some will pass on some/all of that saving to policyholders either by, for instance, refunding part of the premium the insurer has paid and/or lowering the amount they intend to charge over the next 12 months.

However, another interesting statistic found in the above index was that in the last quarter of 2020, of those motorists who were looking to renew their motor insurance policies, over 40% of them found that the amount insurers were intending to charge for the next 12 months was more than they had been paying in the past year. Also, rather surprisingly, it was found that 24% of those policyholders decided to keep their cover with their existing insurer.

The above index looks at the amount motorists are paying partly based on their ages and it found that a 17 year old is paying an average of £1,911 per annum. A 21 year old is paying an average of £1,515 per annum. A 36 year old is paying an average of £629 per annum. A 67 year old is paying an average of £454 per annum.

Where you live has an impact on how much you will be charged for your cover. If you live in Inner London then the average amount paid for fully comprehensive car insurance was £1.220 per annum – that is £40 less than a year ago. If you live in Merseyside and Manchester then the average premium was £984 per annum – that is £69 less than a year ago. If you live in east or north east Scotland then the average amount paid was £560 per annum.

So, when you receive your car insurance renewal documents, why not get in touch with us and we will do as much as we possibly can to help you obtain a competitive car insurance quotation.

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